Ferrari shares decline by 7% following the announcement of the Luce EV.

      Ferrari shares experienced a 7% decline after the introduction of the Luce, its inaugural electric vehicle, priced at €550,000. The drop was fueled by negative online reactions regarding the five-seat hatchback design and uncertainty in the luxury EV market.

      On Monday, Ferrari’s stock in Milan fell by as much as 7 percent, dropping to €290.55 and erasing approximately £3 billion from the company's market capitalization. This sell-off occurred just a day after the car manufacturer revealed the Luce at the Città dello Sport in Rome.

      The Luce is a four-door, five-seat liftback, making it the world's most expensive production electric car, being priced around three to four times higher than models like the Porsche Taycan Turbo S, Lucid Air Sapphire, or Mercedes-AMG EQS.

      Equipped with four electric motors—one for each wheel—the Luce generates a combined 1,036 horsepower. Ferrari claims it can accelerate from 0 to 60 mph in less than 2.5 seconds, reach a top speed exceeding 310 kph, and offer a range of approximately 530 kilometers thanks to its 122 kWh battery pack. Its 800-volt architecture supports fast charging at 350 kW, allowing the battery to charge from 10 to 80 percent in about 18 minutes.

      However, the design faced criticism online, with many comparing it to a Honda Accord, a luxury toaster, and a minivan resembling an Apple Store. As Ferrari's first five-seater and four-door hatchback, the Luce marks a significant shift from the brand's typically low and aggressive styling. Weighing in at over 2.2 tonnes, it is the heaviest Ferrari produced to date.

      The car's design involved collaboration with Jony Ive’s LoveFrom studio and industrial designer Marc Newson, with Ive's minimalist approach resulting in an interior devoid of screens and purely physical controls. Vintage-style dials, a Corning glass center console, and a steering wheel made from recycled aluminum reflect this simplicity.

      Ferrari states that about 95 percent of the Luce's components were custom designed for this model, with the company obtaining 60 patents related to battery technology, axial-flux motors, and torque vectoring. Additionally, an artificial sound system mimics the sound of an electric guitar to create a unique auditory experience, while a system named Torque Shift Engagement simulates engine braking to maintain a driving experience reminiscent of traditional combustion engines.

      CEO Benedetto Vigna emphasized that the Luce represents a complete rethinking rather than merely an electric version of an existing car. His instruction to the engineering team was to focus on Ferrari rather than electric technology. A new facility at the Maranello factory has been established expressly for electric and hybrid vehicle production.

      The market response indicates that investors remain skeptical. Analysts at Oddo BHF noted it was the sharpest stock reaction they had ever observed in response to a car design. Many pointed out a phenomenon of “travel and arrive,” where the stock had appreciated in anticipation of the launch, leading investors to sell post-reveal. The intensity of backlash online suggests a context beyond typical profit-taking.

      Timing is also challenging for the wider luxury EV market. While Porsche is advancing with its electric Cayenne Coupe, Lamborghini has dropped its Lanzador EV project entirely, citing an inability for current electric vehicles to establish the emotional connection buyers desire. Numerous EV models have been pulled from the US market as tariffs, tax credit losses, and import expenses alter the landscape. Ferrari is entering a segment from which other luxury brands are withdrawing.

      Pre-orders for the Luce began in March 2026, with deliveries expected in late 2026 or early 2027. Although Ferrari has not released specific order numbers, the company has traditionally offered its cars in limited quantities, often leading to lengthy waiting lists. The future of the Luce's sales trajectory will depend on whether potential buyers share the market’s doubts or experience the car differently.

      A critical question remains whether Ferrari can integrate a five-seat, four-door electric hatchback into its brand without compromising what distinguishes it. Tesla is investing $25 billion this year to pivot toward autonomy and robotics, at the cost of abandoning its luxury sedan and SUV models. Conversely, Ferrari is banking on its name alone to validate a $640,000 electric family car. Monday’s stock decline suggests the market seeks reassurance before committing.